LOS ANGELES, Oct 07, 2011 (BUSINESS WIRE) -- Baron and Budd, P.C. is investigating an alleged mortgage scheme that banks may be using to take advantage of consumers. Baron and Budd has determined that the mortgage-lending arm of Wells Fargo may be charging inappropriate fees to clients who are more than 20 days late, a period termed "in default," on their mortgage payments. The policy appears to be upheld even if the customer gets caught up and makes payments on time. These fees are typically added to a homeowner's loan balance or otherwise charged to them without the homeowner's knowledge or consent.
"Sadly, this is yet another deceptive practice that banks have developed to make money from consumers," said Roland Tellis, head of Baron and Budd's consumer fraud litigation team. "These banks are taking advantage of homeowners when they're down, and most homeowners don't even know that this is happening."
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